Question

In: Accounting

In May 2019, Cassie acquired a machine for $30,000 to use in her business. The machine...

In May 2019, Cassie acquired a machine for $30,000 to use in her business. The machine is classified as 5-year property. Cassie does not expense the property under Sec. 179 or bonus depreciation. Cassie's depreciation on the machine for 2019 is

A. $3,000.

B. $12,000.

C. $6,000.

D. $15,000.

Solutions

Expert Solution

Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
1 33.33                       20.00 14.29 10 5 3.75
2 44.45                       32.00 24.49 18 9.5 7.219
3 14.81 *                       19.20 17.49 14.4 8.55 6.677
4 7.41                       11.52 12.49 11.52 7.7 6.177
5                       11.52 8.93 * 9.22 6.93 5.713
6                         5.76 8.92 7.37 6.23 5.285
7 8.93 6.55 * 5.90 * 4.888
8 4.46 6.55 5.9 4.522
9 6.56 5.91 4.462 *
10 6.55 5.9 4.461
11 3.28 5.91 4.462
12 5.9 4.461
13 5.91 4.462
14 5.9 4.461
15 5.91 4.462
16 2.95 4.461
17 4.462
18 4.461
19 4.462
20 4.461
21 2.231
Cost of assets 30000
Rate of depreciation for 1st year 20%
Depreciation $6,000
Hence correct answer C. $6000

ekkarill92 answered 1 year ago
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